Selling an investment property in an unsettled market can be a difficult and daunting task. To maximize your chances of success, it is important to make sure that you are realistically pricing your property, so that investors know they are getting a good return on their money.
Good photos and a compelling description are essential. When going through property portals, it is easy to pick out rented properties pictures as they often feature a load of tenants' laundry and unmade beds. Therefore, take the time to choose photos that accurately reflect what the property looks like, at it’s best and shows off its features in an appealing way. One way of standing out from other investment properties being advertised is by showing the potential to increase the current yield, in the description. Could a buyer add a loft room or create an extra bedroom by moving the kitchen into the lounge, to get a higher rent?
Tenants are never going to be too helpful when buyers want to look around. Agreeing viewings with tenants can be a difficult task. As such, it is important for agents and landlords to come up with strategies that will help them get the most viewings. By agreeing specific times and dates in advance, will mean less intrusion into the tenant's lives.
Make sure that the paperwork relating to the tenancy is up to date, including assured shorthold tenancy agreements, Gas safety certificates, Energy performance certificates, right to rent checks and How to Rent leaflets. Confirm that the tenants' deposit is protected and that the property meets all legal requirements.
Once you have agreed an offer, It is important to take the necessary steps to ensure that the sale is pushed through quickly. This means having a solicitor in place, obtaining a management pack and finding out if any major work is planned on the property, has been declared. Having all of these items in order will make it easier for both parties involved to move forward with the sale and ensure that everything goes smoothly.
If you are selling a leasehold flat. An increasingly common reason why sales fall through, is a rising ground rent issue. If the ground rent is more than £250 per year with the potential to rise, then a buyer will find it difficult to get a mortgage, so a deed of variation should be arranged with the freeholder. A short lease can also be seen as an obstacle for potential buyers and could put them off from purchasing the property. Consider starting the process of extending the lease yourself or at least be able to provide the costs. Another thing to consider when selling a flat, make sure that the management company has kept up with all required regulations, and they are able to provide audited accounts.
If you would like to discuss selling your BTL/ Investment property, please get in contact.